Botswana has embarked on an ambitious plan to mobilise more than US$2.98 billion (about P40.53 billion) to finance its energy transition and achieve universal access to clean, affordable, and reliable power by 2030.
The initiative is anchored in the National Energy Compact for Botswana, a high-level framework aligning the country’s energy goals with global sustainable development and climate action targets.
Launched in April 2024 by the World Bank Group and the African Development Bank (AfDB) in collaboration with other global partners, the Compact aims to bridge Africa’s persistent energy access gap through innovative technology and financing models.
According to the Compact, Botswana plans to transform its energy sector through reforms, private-sector participation, and renewable energy investments. The government aims to attract between US$650 million and US$1.5 billion in private investment to accelerate the shift toward a diversified and sustainable energy mix.
Under the Compact, the government is calling on development partners, philanthropies, and private investors to support its drive toward universal energy access. Officials say the transition will not only reduce dependence on fossil fuels but also stimulate economic growth, create jobs, and expand income opportunities—particularly within the renewable energy value chain.
Currently, electricity access in Botswana has plateaued at 75 percent, with grid-based electrification covering most urban and peri-urban areas. However, many rural communities remain off the grid. The government concedes that traditional grid expansion is no longer viable for remote areas and plans instead to deploy off-grid distributed renewable energy (DRE) solutions tailored to sparsely populated regions.
The Compact warns that Botswana’s power system faces serious challenges. About 97 percent of electricity generation relies on coal, mainly from the 600-megawatt Morupule B power station, which continues to underperform. The country’s dependence on a single fossil fuel has made its energy supply vulnerable, forcing reliance on costly electricity imports from neighboring countries already constrained by capacity and weak interconnections.
Financial constraints and macroeconomic pressures have also limited the government’s ability to subsidize electricity costs or fund large infrastructure projects. The resulting strain on the Botswana Power Corporation (BPC) has raised questions about the long-term sustainability of the power sector.
Despite these hurdles, Botswana sees opportunity in its vast solar and wind potential. The Compact commits the government to raising the share of renewable energy in the national mix from 8 percent to 50 percent by 2030. The plan envisions Botswana becoming a clean energy exporter in the Southern African region.
Key priorities include modernizing the national grid, strengthening transmission and distribution networks, and building cross-border interconnectors to boost regional power trade.
The Compact also integrates gender mainstreaming to ensure an inclusive energy transition. It was developed through extensive consultations with development partners, private-sector players, and civil society groups.
The total cost of meeting the Compact’s targets is estimated at between US$2.06 billion (about P27.99 billion) and US$2.98 billion (about P40 billion), with up to US$1.57 billion (P20 billion) expected from private investors.
“This National Compact is our shared pledge to ensure accessible, reliable, and affordable energy as a basic human need—to transform our economy, create jobs, and electrify our journey to an inclusive, high-income country,” President Duma Boko said in remarks quoted by the African Development Bank.
According to the AfDB, National Energy Compacts form a key part of Mission 300, developed and endorsed by governments with technical support from development partners. Each country’s compact integrates three core tracks: infrastructure, financing, and policy.
“The World Bank Group and the African Development Bank Group are working with partners including the Rockefeller Foundation, the Global Energy Alliance for People and Planet (GEAPP), Sustainable Energy for All (SEforALL), and the World Bank’s Energy Sector Management Assistance Program (ESMAP) to align efforts in powering Africa,” the Bank said.
